Chapter 3 - Urban Retail Water Suppliers

California Water Code — §§ 10608.16-10608.44

Sections (15)

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

(a)The state shall achieve a 20-percent reduction in urban per capita water use in California on or before December 31, 2020.

(b)The state shall make incremental progress towards the state target specified in subdivision (a) by reducing urban per capita water use by at least 10 percent on or before December 31, 2015.

§ 10608.20

Amended by Stats. 2019, Ch. 497, Sec. 286. (AB 991) Effective January 1, 2020.

(a)(1) Each urban retail water supplier shall develop urban water use targets and an interim urban water use target by July 1, 2011. Urban retail water suppliers may elect to determine and report progress toward achieving these targets on an individual or regional basis, as provided in subdivision (a) of Section 10608.28, and may determine the targets on a fiscal year or calendar year basis.

(2)It is the intent of the Legislature that the urban water use targets described in paragraph (1) cumulatively result in a 20-percent reduction from the baseline daily per capita water use by December 31, 2020.

(b)An urban retail water supplier shall adopt one of the following methods

for determining its urban water use target pursuant to subdivision (a):

(1)Eighty percent of the urban retail water supplier’s baseline per capita daily water use.

(2)The per capita daily water use that is estimated using the sum of the following performance standards:

(A)For indoor residential water use, 55 gallons per capita daily water use as a provisional standard. Upon completion of the department’s 2017 report to the Legislature pursuant to Section 10608.42, this standard may be adjusted by the Legislature by statute.

(B)For landscape irrigated through dedicated or residential meters or connections, water efficiency equivalent to the standards of the Model Water Efficient Landscape Ordinance set forth in Chapter 2.7 (commencing with Section

490) of Division 2 of Title 23 of the California Code of Regulations, as in effect the later of the year of the landscape’s installation or 1992. An urban retail water supplier using the approach specified in this subparagraph shall use satellite imagery, site visits, or other best available technology to develop an accurate estimate of landscaped areas.

(C)For commercial, industrial, and institutional uses, a 10-percent reduction in water use from the baseline commercial, industrial, and institutional water use by 2020.

(3)Ninety-five percent of the applicable state hydrologic region target, as set forth in the state’s draft 20x2020 Water Conservation Plan (dated April 30, 2009). If the service area of an urban water supplier includes more than one hydrologic region, the supplier shall apportion its service area to each region based on population or area.

(4)A method that shall be identified and developed by the department, through a public process, and reported to the Legislature no later than December 31, 2010. The method developed by the department shall identify per capita targets that cumulatively result in a statewide 20-percent reduction in urban daily per capita water use by December 31, 2020. In developing urban daily per capita water use targets, the department shall do all of the following:

(A)Consider climatic differences within the state.

(B)Consider population density differences within the state.

(C)Provide flexibility to communities and regions in meeting the targets.

(D)Consider different levels of per capita water use

according to plant water needs in different regions.

(E)Consider different levels of commercial, industrial, and institutional water use in different regions of the state.

(F)Avoid placing an undue hardship on communities that have implemented conservation measures or taken actions to keep per capita water use low.

(c)If the department adopts a regulation pursuant to paragraph (4) of subdivision (b) that results in a requirement that an urban retail water supplier achieve a reduction in daily per capita water use that is greater than 20 percent by December 31, 2020, an urban retail water supplier that adopted the method described in paragraph (4) of subdivision (b) may limit its urban water use target to a reduction of not more than 20 percent by December 31, 2020, by adopting the method described in paragraph (1)

of subdivision (b).

(d)The department shall update the method described in paragraph (4) of subdivision (b) and report to the Legislature by December 31, 2014. An urban retail water supplier that adopted the method described in paragraph (4) of subdivision (b) may adopt a new urban daily per capita water use target pursuant to this updated method.

(e)An urban retail water supplier shall include in its urban water management plan due in 2010 pursuant to Part 2.6 (commencing with Section 10610) the baseline daily per capita water use, urban water use target, interim urban water use target, and compliance daily per capita water use, along with the bases for determining those estimates, including references to supporting data.

(f)When calculating per capita values for the purposes of this chapter, an urban retail

water supplier shall determine population using federal, state, and local population reports and projections.

(g)An urban retail water supplier may update its 2020 urban water use target in its 2015 urban water management plan required pursuant to Part 2.6 (commencing with Section 10610).

(h)(1) The department, through a public process and in consultation with the California Urban Water Conservation Council, shall develop technical methodologies and criteria for the consistent implementation of this part, including, but not limited to, both of the following:

(A) Methodologies for calculating base daily per capita water use, baseline commercial, industrial, and institutional water use, compliance daily per capita water use, gross water use, service area population, indoor residential water use,

and landscaped area water use.

(B) Criteria for adjustments pursuant to subdivisions (d) and (e) of Section 10608.24.

(2)The department shall post the methodologies and criteria developed pursuant to this subdivision on its internet website, and make written copies available, by October 1, 2010. An urban retail water supplier shall use the methods developed by the department in compliance with this part.

(i)(1) The department shall adopt regulations for implementation of the provisions relating to process water in accordance with Section 10608.12, subdivision (e) of Section 10608.24, and subdivision (d) of Section 10608.26.

(2)The initial adoption of a regulation authorized by this subdivision is deemed to address an emergency,

for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted for that purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code. After the initial adoption of an emergency regulation pursuant to this subdivision, the department shall not request approval from the Office of Administrative Law to readopt the regulation as an emergency regulation pursuant to Section 11346.1 of the Government Code.

(j)(1) An urban retail water supplier is granted an extension to July 1, 2011, for adoption of an urban water management plan pursuant to Part 2.6 (commencing with Section 10610) due in 2010 to allow the use of technical methodologies developed by the department pursuant to paragraph (4) of subdivision (b) and subdivision (h). An urban retail water supplier that adopts an urban water management plan due in 2010 that does not use the methodologies

developed by the department pursuant to subdivision (h) shall amend the plan by July 1, 2011, to comply with this part.

(2)An urban wholesale water supplier whose urban water management plan prepared pursuant to Part 2.6 (commencing with Section 10610) was due and not submitted in 2010 is granted an extension to July 1, 2011, to permit coordination between an urban wholesale water supplier and urban retail water suppliers.

§ 10608.22

Amended by Stats. 2023, Ch. 849, Sec. 5. (AB 1572) Effective January 1, 2024.

Notwithstanding the method adopted by an urban retail water supplier pursuant to Section 10608.20, an urban retail water supplier’s per capita daily water use reduction shall be no less than 5 percent of base daily per capita water use as defined in paragraph (3) of subdivision (c) of Section 10608.12. This section does not apply to an urban retail water supplier with a base daily per capita water use at or below 100 gallons per capita per day.

§ 10608.24

Amended by Stats. 2010, Ch. 328, Sec. 234. (SB 1330) Effective January 1, 2011.

(a)Each urban retail water supplier shall meet its interim urban water use target by December 31, 2015.

(b)Each urban retail water supplier shall meet its urban water use target by December 31, 2020.

(c)An urban retail water supplier’s compliance daily per capita water use shall be the measure of progress toward achievement of its urban water use target.

(d)(1) When determining compliance daily per capita water use, an urban retail water supplier may consider the following factors:

(A) Differences in evapotranspiration and rainfall in the baseline period compared to the compliance reporting period.

(B) Substantial changes to commercial or industrial water use resulting from increased business output and economic development that have occurred during the reporting period.

(C) Substantial changes to institutional water use resulting from fire suppression services or other extraordinary events, or from new or expanded operations, that have occurred during the reporting period.

(2)If the urban retail water supplier elects to adjust its estimate of compliance daily per capita water use due to one or more of the factors described in paragraph (1), it shall provide the basis for, and data supporting, the adjustment in the report required by Section 10608.40.

(e)When developing the urban water use target pursuant to Section 10608.20, an urban retail water supplier that has a substantial percentage of industrial water use in its service area may exclude process water from the calculation of gross water use to avoid a disproportionate burden on another customer sector.

(f)(1) An urban retail water supplier that includes agricultural water use in an urban water management plan pursuant to Part 2.6 (commencing with Section 10610) may include the agricultural water use in determining gross water use. An urban retail water supplier that includes agricultural water use in determining gross water use and develops its urban water use target pursuant to paragraph (2) of subdivision (b) of Section 10608.20 shall use a water efficient standard for agricultural irrigation of 100 percent of reference evapotranspiration

multiplied by the crop coefficient for irrigated acres.

(2)An urban retail water supplier, that is also an agricultural water supplier, is not subject to the requirements of Chapter 4 (commencing with Section 10608.48), if the agricultural water use is incorporated into its urban water use target pursuant to paragraph (1).

§ 10608.26

Amended by Stats. 2010, Ch. 257, Sec. 1. (AB 2277) Effective January 1, 2011.

(a)In complying with this part, an urban retail water supplier shall conduct at least one public hearing to accomplish all of the following:

(1)Allow community input regarding the urban retail water supplier’s implementation plan for complying with this part.

(2)Consider the economic impacts of the urban retail water supplier’s implementation plan for complying with this part.

(3)Adopt a method, pursuant to subdivision (b) of Section 10608.20, for determining its urban water use target.

(b)In complying with this part, an

urban retail water supplier may meet its urban water use target through efficiency improvements in any combination among its customer sectors. An urban retail water supplier shall avoid placing a disproportionate burden on any customer sector.

(c)For an urban retail water supplier that supplies water to a United States Department of Defense military installation, the urban retail water supplier’s implementation plan for complying with this part shall consider the conservation of that military installation under federal Executive Order 13514.

(d)(1) Any ordinance or resolution adopted by an urban retail water supplier after the effective date of this section shall not require existing customers as of the effective date of this section, to undertake changes in product formulation, operations, or equipment that would reduce process water use, but may provide

technical assistance and financial incentives to those customers to implement efficiency measures for process water. This section shall not limit an ordinance or resolution adopted pursuant to a declaration of drought emergency by an urban retail water supplier.

(2)This part shall not be construed or enforced so as to interfere with the requirements of Chapter 4 (commencing with Section 113980) to Chapter 13 (commencing with Section 114380), inclusive, of Part 7 of Division 104 of the Health and Safety Code, or any requirement or standard for the protection of public health, public safety, or worker safety established by federal, state, or local government or recommended by recognized standard setting organizations or trade associations.

§ 10608.28

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

(a)An urban retail water supplier may meet its urban water use target within its retail service area, or through mutual agreement, by any of the following:

(1)Through an urban wholesale water supplier.

(2)Through a regional agency authorized to plan and implement water conservation, including, but not limited to, an agency established under the Bay Area Water Supply and Conservation Agency Act (Division 31 (commencing with Section 81300)).

(3)Through a regional water management group as defined in Section 10537.

(4)By an integrated regional water management funding area.

(5)By hydrologic region.

(6)Through other appropriate geographic scales for which computation methods have been developed by the department.

(b)A regional water management group, with the written consent of its member agencies, may undertake any or all planning, reporting, and implementation functions under this chapter for the member agencies that consent to those activities. Any data or reports shall provide information both for the regional water management group and separately for each consenting urban retail water supplier and urban wholesale water supplier.

§ 10608.32

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

All costs incurred pursuant to this part by a water utility regulated by the Public Utilities Commission may be recoverable in rates subject to review and approval by the Public Utilities Commission, and may be recorded in a memorandum account and reviewed for reasonableness by the Public Utilities Commission.

§ 10608.34

Amended by Stats. 2019, Ch. 239, Sec. 1. (AB 1414) Effective January 1, 2020.

(a)(1) On or before January 1, 2017, the department shall adopt rules for all of the following:

(A) The conduct of standardized water loss audits by urban retail water suppliers in accordance with the method adopted by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0.

(B) The process for validating a water loss audit report prior to submitting the report to the department. For the purposes of this section, “validating” is a process whereby an urban retail water supplier uses a technical expert to confirm the basis of all data entries in the urban retail water

supplier’s water loss audit report and to appropriately characterize the quality of the reported data. The validation process shall follow the principles and terminology laid out by the American Water Works Association in the third edition of Water Audits and Loss Control Programs, Manual M36 and in the Free Water Audit Software, version 5.0. A validated water loss audit report shall include the name and technical qualifications of the person engaged for validation.

(D) The certification requirements for a person selected by an urban retail water supplier to provide validation of its own water loss audit report.

(E) The method of submitting a water loss audit report to the department.

(2)The department shall update rules adopted pursuant to paragraph (1) no later than six months after the release of subsequent editions of the American Water Works Association’s Water Audits and Loss Control Programs, Manual M36. Except as provided by the department, until the department adopts updated rules pursuant to this paragraph, an urban retail water supplier may rely upon a subsequent edition of the American Water Works Association’s Water Audits and Loss Control Programs, Manual M36 or the Free Water Audit Software.

(b)(1) On or before October 1 of each year until October 1, 2023, each urban retail water supplier reporting on a calendar year basis shall submit a completed and validated water loss audit report for the previous calendar year or the previous fiscal year as prescribed by the department pursuant to subdivision (a).

(2)On or before January 1 of each year until January 1, 2024, each urban retail water supplier reporting on a fiscal year basis shall submit a completed and validated water loss audit report for the previous fiscal year as prescribed by the department pursuant to subdivision (a).

(3)On or before January 1, 2024, and on or before January 1 of each year thereafter, each urban retail water supplier shall submit a completed and validated water loss audit report for the previous calendar year or previous fiscal year as part of the report submitted to the department pursuant to subdivision (a) of Section 10609.24 and as prescribed by the department pursuant to subdivision (a).

(4)Water loss audit reports submitted on or before October 1, 2017, may be completed and validated with assistance as described in subdivision

(c).

(c)Using funds available for the 2016–17 fiscal year, the board shall contribute up to four hundred thousand dollars ($400,000) towards procuring water loss audit report validation assistance for urban retail water suppliers.

(d)Each water loss audit report submitted to the department shall be accompanied by information, in a form specified by the department, identifying steps taken in the preceding year to increase the validity of data entered into the final audit, reduce the volume of apparent losses, and reduce the volume of real losses.

(e)At least one of the following employees of an urban retail water supplier shall attest to each water loss audit report submitted to the department:

(1)The chief financial officer.

(2)The chief engineer.

(3)The general manager.

(f)The department shall deem incomplete and return to the urban retail water supplier any final water loss audit report found by the department to be incomplete, not validated, unattested, or incongruent with known characteristics of water system operations. A water supplier shall resubmit a completed water loss audit report within 90 days of an audit being returned by the department.

(g)The department shall post all validated water loss audit reports on its internet website in a manner that allows for comparisons across water suppliers. The department shall make the validated water loss audit reports available for public viewing in a timely manner after their receipt.

(h)Using available funds, the department shall provide technical assistance to guide urban retail water suppliers’ water loss detection programs, including, but not limited to, metering techniques, pressure management techniques, condition-based assessment techniques for transmission and distribution pipelines, and utilization of portable and permanent water loss detection devices.

(i)No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. In adopting these rules, the board shall employ full life-cycle cost accounting to evaluate the costs of meeting the performance standards. The board may consider establishing a minimum allowable water loss threshold that, if reached and maintained by an urban water supplier, would exempt the urban water

supplier from further water loss reduction requirements.

§ 10608.35

Added by Stats. 2018, Ch. 14, Sec. 7. (SB 606) Effective January 1, 2019.

(a)The department, in coordination with the board, shall conduct necessary studies and investigations and make a recommendation to the Legislature, by January 1, 2020, on the feasibility of developing and enacting water loss reporting requirements for urban wholesale water suppliers.

(b)The studies and investigations shall include an evaluation of the suitability of applying the processes and requirements of Section 10608.34 to urban wholesale water suppliers.

(c)In conducting necessary studies and investigations and developing its recommendation, the department shall solicit broad public

participation from stakeholders and other interested persons.

§ 10608.36

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

Urban wholesale water suppliers shall include in the urban water management plans required pursuant to Part 2.6 (commencing with Section 10610) an assessment of their present and proposed future measures, programs, and policies to help achieve the water use reductions required by this part.

§ 10608.4

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

It is the intent of the Legislature, by the enactment of this part, to do all of the following:

(a)Require all water suppliers to increase the efficiency of use of this essential resource.

(b)Establish a framework to meet the state targets for urban water conservation identified in this part and called for by the Governor.

(c)Measure increased efficiency of urban water use on a per capita basis.

(d)Establish a method or methods for urban retail water suppliers to determine targets for achieving increased water use efficiency

by the year 2020, in accordance with the Governor’s goal of a 20-percent reduction.

(e)Establish consistent water use efficiency planning and implementation standards for urban water suppliers and agricultural water suppliers.

(f)Promote urban water conservation standards that are consistent with the California Urban Water Conservation Council’s adopted best management practices and the requirements for demand management in Section 10631.

(g)Establish standards that recognize and provide credit to water suppliers that made substantial capital investments in urban water conservation since the drought of the early 1990s.

(h)Recognize and account for the investment of urban retail water suppliers in providing recycled water for beneficial uses.

(i)Require implementation of specified efficient water management practices for agricultural water suppliers.

(j)Support the economic productivity of California’s agricultural, commercial, and industrial sectors.

(k)Advance regional water resources management.

§ 10608.40

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

Urban water retail suppliers shall report to the department on their progress in meeting their urban water use targets as part of their urban water management plans submitted pursuant to Section 10631. The data shall be reported using a standardized form developed pursuant to Section 10608.52.

§ 10608.42

Amended by Stats. 2014, Ch. 463, Sec. 1. (AB 2067) Effective January 1, 2015.

(a)The department shall review the 2015 urban water management plans and report to the Legislature by July 1, 2017, on progress towards achieving a 20-percent reduction in urban water use by December 31, 2020. The report shall include recommendations on changes to water efficiency standards or urban water use targets to achieve the 20-percent reduction and to reflect updated efficiency information and technology changes.

(b)A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

§ 10608.43

Added by Stats. 2009, 7th Ex. Sess., Ch. 4, Sec. 1. (SB 7 7x) Effective February 3, 2010.

The department, in conjunction with the California Urban Water Conservation Council, by April 1, 2010, shall convene a representative task force consisting of academic experts, urban retail water suppliers, environmental organizations, commercial water users, industrial water users, and institutional water users to develop alternative best management practices for commercial, industrial, and institutional users and an assessment of the potential statewide water use efficiency improvement in the commercial, industrial, and institutional sectors that would result from implementation of these best management practices. The taskforce, in conjunction with the department, shall submit a report to the Legislature by April 1, 2012, that shall include a review of multiple sectors within

commercial, industrial, and institutional users and that shall recommend water use efficiency standards for commercial, industrial, and institutional users among various sectors of water use. The report shall include, but not be limited to, the following:

(a)Appropriate metrics for evaluating commercial, industrial, and institutional water use.

(b)Evaluation of water demands for manufacturing processes, goods, and cooling.

(c)Evaluation of public infrastructure necessary for delivery of recycled water to the commercial, industrial, and institutional sectors.

(d)Evaluation of institutional and economic barriers to increased recycled water use within the commercial, industrial, and institutional sectors.

(e)Identification of technical feasibility and cost of the best management practices to achieve more efficient water use statewide in the commercial, industrial, and institutional sectors that is consistent with the public interest and reflects past investments in water use efficiency.

§ 10608.44

Amended by Stats. 2010, Ch. 328, Sec. 235. (SB 1330) Effective January 1, 2011.

Each state agency shall reduce water use at facilities it operates to support urban retail water suppliers in meeting the target identified in Section 10608.16.